The FOMC decided to wait and hold the QE3 in place at a pace of $85 billion per month. Apparently, the economy of the United States is not ready to quit the stimulus, decided the FOMC members by a 1-to-9 vote. Indeed, the data below expectations coming from the labour market influenced the decision took today and Ben Bernanke gave assurances that the progress of the economy is basically deciding whether or not the QE3 will continue to run or not. Likewise, the interest rate is going to … [Read more...]
Tomorrow FOMC Will Decide QE3′s Fate
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Tomorrow is the much awaited day, when chairman Ben Bernanke will expose his decision concerning the evolution of the third Quantitative Easing program that has been implemented for one year, so far. Everybody's eyes will be on Fed's chairman and for sure the markets will be highly sensitive to each word delivered. The big question is: will the QE3 be reduced now? Or later this year? Most of the investors, and also most of the surveys conducted by Reuters and Bloomberg are pointing towards … [Read more...]
Major News on the Most Important Markets
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Now that Lawrence Summers is out of the race for the presidency of Fed, once again the assumptions that Janet Yellen will take over the leadership of Federal Reserve Bank are becoming more realistic. What does that mean? I means that the Bernanke's style will be kept and the Quantitative Easing Program will know a smooth tapering or even a continuation, under certain circumstances. Investors don't expect major changes in the way the tapering will evolve (a reduction consisting in $10 billion), … [Read more...]
What to Expect from the Forex Market Next Week 16 – 20 September
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Another week has past and some very interesting readings were published. Wednesday Great Britain has published some very good data from the labor market. Its Claimant Count Change has fallen 32.6K and the Unemployment Rate dropped unexpectedly at 7.7%. The next day Australia reported a rise in its Unemployment Rate of 0.1% and RBNZ’s governor said that it expected a rise in the inflation rate in 2014 and they might have to raise the interest rate. Thursday it was also published the Unemployment … [Read more...]
What to Expect from the Forex Market Next Week 8 - 13 September
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The week that just has passed, brought some high volatility on the Forex market, especially in the second part. The ISM Manufacturing and Non-Manufacturing PMIs from the United States surprised with above expectations readings. Draghi has left the door open for a new cut of the interest rate and the Non-Farm Payrolls have disappointed with a lower number than expected. Date Currency Forecast Previous MonSep 9 NZD Manufacturing Sales q/q 0.20% JPY Current … [Read more...]
Non-Farm Payrolls Delivers Bad News
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The most important indicator of the American labour market, the Non-Farm Employment Change, dissapointed big time with only 169k jobs created last month. On the other side, the unemployment rate fell to 7.3%, a minimum close to data last reported in January 2009. As this is an important critaria that Fed considers before deciding on the Quantitative Easing Program, the 18th of September looks like a battle even harder. Currently, the FOMC members are approving Ben Bernanke's plan to reduce the … [Read more...]
United States Got Into Middle East Affairs
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President Barak Obama is visiting Sweden, place were is having a public conference together with the Prime Minister of Sweden John Fredrik Reinfeldt. The subject awaited by everyone was the issue that is being debated by the Congress, related to the situation in Syria. The conference started with details about the swedish economy which is running under normal parameters, as it faces the European crisis with success. The Transatlantic Trade and Investment Patnership is one of the priorities … [Read more...]
Australia is Running Below Trend
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Australia and China have the largest trading partnership as China is making important investments in the mining companies in Australia. Recently, those investments reduced considerably, leading to a poorer industrial and manufacturing activity in Australia and a slowdown of growth in China, as it produces and exports less. The Reserve Bank of Australia left its benchmark interest rate unchanged to 2.5% as expected, maintaining the sentiment of "below trend" economic evolution. Concerning the … [Read more...]
What to Expect for the first week of September on the Forex Market?
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The last week of august should have past smoothly, because there were no expected very important events. Still the conflict in Syria has raised the volatility of the markets. Overall the stock market has fallen, the price of oil rallied and touched a new high for the past six months and on the Forex Market safe heavens appreciated the most. On Thursday the spirits calmed down regarding Syria, but the release of the US GDP above expectations (2.5% vs. 2.2% exp.) has triggered another rally for … [Read more...]
United States Closer To Taper QE3
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Due to exports, the trade balanced managed to reduce by 0.8% and the American GDP grew by 2.5% from the last quarter’s report of 1.7% improvement. The most important fields of the U.S. economy, the labor market and the housing market, are showing a recovery, making the FOMC’s decision on September more evident. The unemployment claims (331k) are still on a descending trend, even if not far from the last release. Today the U.S. dollar appreciated against euro, as the economy proved to remain on … [Read more...]
Mark Carney Believes in United Kingdom
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United Kingdom is barely keeping its worrisome economic situation under control. The unfavorable conditions given by the worldwide difficulties are making the U.K. recovery more difficult to be accomplished. If China, Australia and United States are growing at a relatively good pace, U.K. still produces 3%, less than it did five years ago, mainly because of the poor situation of the Euro zone. Looking at various sectors of the economy, traces of a hard struggle to resist to the recession are … [Read more...]
